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I. MINE DESCRIPTION The Deserado Mine is an underground operation utilizing both continuous and longwall mining equipment. Approximately 2,600,000 tons per year of raw coal will be produced. After preparation, up to 2,200,000 tons per year will be shipped to the power plant. There are two entrances to the coal seams: the D Seam Portal and the B Seam Portal, Section 4, T2N, R101W. The Ventilation Entry Area (also referred to as East Exhaust Portal), was located in Section 11, T2N, R101 W and provided access to the D Seam. This entry has been sealed and is in the process of being reclaimed during 2000 and early 2001. In addition to the above-mentioned disturbances, another major surface disturbance are the refuse disposal areas. All surface disturbances are described in detail in the Mine Surface Facilities Operation Plan. The remainder of this section is devoted to an overall general description of the mine. I.A Underground Development The mine plan is based upon mining two separate coal seams, the D Seam and the B Seam complex (hereafter called the B Seam). The D Seam, which overlies the B Seam, averaged about 7.5 feet thick. It was mineable throughout the southern and eastern part of the permit area, but thins and becomes unmineabletoward the northwest. Mining was completed in this seam in 1999. The B Seam reaches maximum thickness in leases C-8424 and C-8425 and is mineable throughoutthesesreas. The coal seams are accessed by rock tunnels at two locations within the D Portal Area. The D Portal was developed first and the B Portal was developed later. Ventilation Entries were developed from the mine in the D Seam to the outcrop in SW1/4, NW1/4, Section 11. Two ventilation shafts have been installed for the B Seam with additional shafts anticipated as the mine is developed Raw coal from the mine passes through a rotary breaker and into twin 10,000 ton raw-coal silos. From there the coal goes to the preparation plant or is shipped directly to a 25,000 ton clean coal slot storage facility. The refuse from the preparation plant is transported by off-highway trucks to the disposal area. The raw coal production from this mine will be approximately 2,600,000 tons per year at full production. This allows for a maximum planned delivery of approximately 2,200,000 tons of clean coal. I.A.1 Mine Openings The underground access to the coal seams is provided by an open-cut bench Rio Blanco Country Special Use Permit #81-1 Exhibit B-Mining Plan September2000